Crypto ETFs Continue Outflows, Bitcoin ETFs Shed $74M

The crypto exchange-traded fund (ETF) market kicked off the week with another round of capital outflows, as Bitcoin ETFs lost a combined $74.19 million on March 3. The decline marks yet another setback for crypto ETFs, which have experienced only one day of inflows in the past two weeks, signaling investor caution and market uncertainty.

📉 Bitcoin ETF Outflows Continue

🔹 Total BTC ETF outflows (March 3): $74.19 million
🔹 Largest single outflow: BlackRock’s IBIT ($77.97M)
🔹 Grayscale’s GBTC loss: $54.39M
🔹 Only major inflow: Ark 21Shares ARKB ($58.18M)

While Ark 21Shares’ ARKB saw positive investor sentiment, BlackRock and Grayscale continued to bleed capital. The steady exodus from Grayscale’s GBTC has been a persistent theme since the fund converted into an ETF, as investors look for alternatives with lower fees.

🛑 Ether ETFs See 8th Consecutive Day of Outflows

Ethereum ETFs were not spared, marking their eighth straight day of outflows, totaling $12.10 million on Monday.

🔹 Total ETH ETF outflows (March 3): $12.10 million
🔹 Biggest outflow: BlackRock’s ETHA ($16.06M)
🔹 Smallest inflow: Bitwise ETHW ($3.96M)

Despite the persistent outflows from Ethereum ETFs, Bitwise’s ETHW managed to attract new capital, providing a rare bright spot in an otherwise negative trend.

💰 Total Crypto ETF Holdings Shrink

As of March 3, the total crypto ETF assets under management (AUM) stood at:

📊 Bitcoin ETFs: $97.26 billion
📊 Ethereum ETFs: $7.72 billion

This continued downward movement reflects investor hesitancy amid broader market concerns. The ongoing trend of ETF outflows raises questions about near-term institutional demand for crypto, especially as Bitcoin and Ethereum struggle to maintain bullish momentum.

📊 What’s Driving the Outflows?

Several factors are contributing to the recent ETF outflows:

🔹 Macroeconomic Uncertainty: U.S. market conditions, inflation fears, and regulatory developments are keeping institutional investors cautious.
🔹 Profit-Taking: With Bitcoin recently hitting all-time highs, some investors are choosing to lock in gains rather than hold long-term.
🔹 Regulatory Pressure: The U.S. SEC’s ongoing scrutiny of crypto-related financial products has left some investors wary.
🔹 Market Sentiment: Volatility and uncertainty surrounding Bitcoin’s price movements could be pushing some funds away from crypto ETFs.

🚀 What’s Next for Crypto ETFs?

Despite the current trend of outflows, some analysts believe the crypto ETF market could see a turnaround if:

✔️ Bitcoin maintains key support levels and resumes a strong uptrend.
✔️ Regulatory clarity improves, particularly around spot Ethereum ETFs.
✔️ Macroeconomic conditions stabilize, bringing new institutional capital into the space.

For now, crypto ETFs continue to struggle with persistent investor pullbacks, and all eyes are on whether the trend will reverse as Bitcoin and Ethereum enter the second quarter of 2025.